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Subsequent Events

9 Months Ended

Sep. 30, 2020

15. Subsequent Events

COVID-19 Pandemic Update

The information provided about the impact of the COVID-19 Pandemic in Note 11 is updated for activity subsequent to September 30, 2020 as follows:

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Tenant Operating Status – The following table illustrates the percentage of the Company’s consolidated and unconsolidated ABR derived from stores which were open or partially open for business as of the dates indicated:

	Percentage of Tenants Open for Business as of
	June 30, 2020			September 30, 2020			October 31, 2020

Core		74	%		86	%		86	%
Fund		74	%		88	%		87	%

•

Rent Collections – The following table depicts collections of pre-COVID billings (original contract rents without regard to deferral or abatement agreements) and excludes the impact of any security deposits applied against tenant accounts as of the dates shown (Fund collections rates exclude data for non-managed properties):

	Collections as of:
	June 30, 2020 for			September 30, 2020 for						October 31, 2020 for
	Second Quarter 2020			Second Quarter 2020			Third Quarter 2020			Second Quarter 2020			Third Quarter 2020			October 2020

Core		71	%		74	%		85	%		76	%		87	%		90	%
Fund		62	%		65	%		77	%		67	%		79	%		81	%

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Rent Concession Agreements – During October 2020, the Company executed 18 rent concession arrangements with tenants comprised of 9 agreements for rent deferral and 9 agreements for rent forgiveness aggregating approximately $1.4 million related to the COVID-19 Pandemic. The Company is currently determining how it will account for these agreements. At September 30, 2020, the Company had executed a total of 237 rent concession agreements (Note 11).

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Bankruptcy Risk – Subsequent to September 30, 2020 and through October 31, 2020, there have been no additional bankruptcies of national retailers, that are tenants of the Company. As of October 31, for all bankruptcies announced during 2020, the Core Portfolio has 6 operating stores with ABR attributable to Acadia totaling $2.6 million, or 1.9% of Core ABR, and the Fund Portfolio has 17 operating stores with ABR attributable to Acadia totaling $1.1 million, or 5.2% of Fund ABR, for which these leases may be rejected in the future.

Debt Extensions

Subsequent to September 30, 2020, the Company modified two consolidated Fund loans aggregating $96.2 million (prior to principal reductions aggregating $8.2 million) as well as one unconsolidated Fund loan for $15.3 million, to extend their maturity dates by one to two years.

Litigation Settlement

On October 30, 2020, the litigation matter concerning the Brandywine Holdings loan (Note 7) was settled, with the mortgage loan being satisfied by Brandywine Holdings through a $30 million payment that represented a discount to the carrying value at September 30,2020 (and the Successor Lender retained amounts in the suspense account from property collections), which will result in a gain for accounting purposes in the fourth quarter. In connection with the settlement, the parties entered into joint stipulations dismissing each of the Court of Chancery action, the Delaware Superior Court actions, and the appeals with prejudice.

Note Receivable Modification

On November 2, 2020, Fund II modified its $33.6 million note receivable (Note 3) to extend the maturity date from December 7, 2020 to April 15, 2021 and to reduce the outstanding balance by $10.0 million reflecting substantial completion of the project by the developer/borrower.